Bigmotor pulls ads, expands probe into company-wide insurance fraud

Insurers are demanding to be reimbursed the fraudulent claims paid out

Bigmotor pulls ads, expands probe into company-wide insurance fraud

Motor & Fleet

By Kenneth Araullo

Japanese used car dealer Bigmotor is pulling its advertisements on television and radio after reports of company-wide insurance fraud surfaced a few days ago.

A Tokyo FM Broadcasting program division official said that it received a notice of suspension from Bigmotor and stopped the commercials accordingly.

"We've decided to suspend commercials and are contacting broadcasters in turn," a Bigmotor official said, according to a report from Nippon.

The disgraced used car dealer is also planning to widen the probe into the fraudulent insurance claims carried out by employees. Part of the plan to appease affected insurance companies calls for a third party to investigate the affair.

Affected insurers are also demanding to be reimbursed for the money paid out in the fraudulent claims. Bigmotor’s own report found intentional damage and padded insurance claims to non-life units for repairs in at least 1,275 cases, resulting in JPY49.95 million in claims.

In a few days, Bigmotor is expected to attend a hearing with the Land, Infrastructure, Transport, and Tourism Ministry, where it will be cross-examined regarding details of the misconduct and whether it violates the Road Transport Vehicle Law in the country.

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